Identification of Materiality

Identification Process for Materiality

The ANA Group's management vision is "Uniting the World in Wonder". We believe that we should be a corporate citizen that develops in tandem with society by resolving global issues in a way that is commensurate with the ANA Group identity. We have identified material issues for the Group to address, and is working to resolve these through incorporation in business strategies, plans, etc.

When defining material issues to be addressed by the Group, we refer to our Mission Statement and Corporate Strategy, ANA Group strengths, and social trends, identifying long-term issues in global society and determining whether these issues are consistent and constant with our vision and strategy and whether we can contribute solutions through our business activities.(Figure1)

Figure1 Identifying Materiality

Conceptual diagram in which three circles, Management Philosophy / Management Strategy, ANA Group's Strengths, and Social Trends, are drawn, and the overlapping areas of the three circles are important issues.

We determine degree of importance and identify materiality through mapping issues on two axes: one representing the impact on group business (management axis), and the other representing the impact on society and the environment, or stakeholder interest (society axis).(Figure2)

Figure2 Society and Management Axes

We conduct an annual review to ensure that identified material issues align with the global landscape, environmental changes, and the ANA Group's business strategy. The review process involves verifying the validity of the newly identified issues by engaging in discussions with internal and external stakeholders and gathering relevant information.

Figure3 Confirmation Steps

STEP1 Comprehending / Identifying Issues Understanding Global Trends Regarding Social Issues, STEP2 Assigning Issue Priorities Wide-Ranging Stakeholder Engagement, STEP3 Validity Confirmation Management Management

The ANA Group explored material issues in the assumption that it would target sincere promotion of its ESG management and simultaneous creation of social and economic value in the execution of its management strategy. Specifically, we have used a process of understanding the opportunities and risks in executing our corporate strategy(Figure4) and taking the specific identification and confirmation steps laid out on the opposite page to identify material issues given a multifaceted perspective of global trends for societal issues, the economic conditions for our own company, and expectations from stakeholders. The identified material issues are discussed and deliberated upon at the Group Management Committee before being passed on to the Board of Directors.

Figure4 Opportunities and Risks in Executing the ANA Group Corporate Strategy

In fiscal 2022, the ANA Group reviewed the materiality to be addressed through redefining the FY2023-25 ANA Group Corporate Strategy, which was also set to realize its new management vision.
Since fiscal 2020, we have united as a group and overcome company crises among impacts of COVID-19 and unpredictable changes in the global environment through the ingenuity, motivation, and autonomy of each employee. The power of people and the capabilities of our organization stems from our human resources. We believe that strengthening the investment in our human capital will enable them to leverage their individual and diverse strengths to drive change, thus supporting the medium- to long-term sustainable growth of the Company. In light of this, we added human resources as a material issue, as they have also historically served as the foundation of value creation for the ANA Group. Other materiality identified include environment, people (human resources, DEI, and human rights), and regional development. (Figure5)

Figure5 Materiality Matrix

The vertical axis (the more important the higher, the social axis consisting of stakeholder interests and impact on society and the environment), and the horizontal axis (the more important the right, the impact on the business of the ANA Group (business philosophy and vision, There is a management axis consisting of the direction of management strategy, business opportunities and risks, and regional revitalization (decline in rural areas in Japan, income and education disparities in emerging countries) slightly below and slightly to the right of the center. The environment (climate change / environmental pollution) is slightly upper right. To the right are People (Human Resources (Investment in human capital), DEI (Diversity of Customers and Employees) and Human Rights (Human rights violations across the supply chain)).

Identified Material Issues and Specific Initiatives